India sets sights on 10% growth by 2010
India's economy could be growing by 10 percent a year by 2012 with the right set of policies, but the US subprime crisis might trim exports and capital flows, the prime minister said yesterday.
Annual growth dipped to 8.9 percent in the September quarter, falling below 9 percent for the first time in three quarters, as industrial output slowed due to monetary tightening designed to trim inflation.
Top officials are confident they can maintain growth momentum despite a surge in the value of the rupee against the dollar this year, which is hurting exporters, and high interest rates.
"It is possible that with the correct set of policies ... we will not only be able to maintain this momentum of high growth into the near future but may be able to raise it to 10 percent," Manmohan Singh told top policymakers.
India, the world's fastest-growing major economy after China, grew 9.4 percent in the last fiscal year, its strongest in 18 years.
Its surging expansion has attracted global investors, fuelling a stock market boom and pushing firms to expand capacity.
"This high growth rate has become possible because of the historically high savings and investment rates which we are witnessing," Singh said at a meeting of the National Development Council set to approve policies for the 5 years to 2012.
Agencies
(China Daily 12/20/2007 page16)
